After a successful debut in New York City, the "Book by Cadillac" car subscription service is expanding to Los Angeles and Dallas. The service gives users access to a fleet of Cadillacs for a flat monthly fee.

Los Angeles and Dallas were chosen as the next two cities to get the service because people in both areas expressed a high level of interest, Book by Cadillac global director Melody Lee told The Drive. In addition, L.A. and Dallas each boast a "healthy luxury market," and high population of Gen X and Gen Y customers, who generally more interested in these types of mobility services, Lee said.

Book by Cadillac allows users to reserve a car using a smartphone app. The car is then delivered to a place of their choice, like a home or office. Cadillac charges a onetime $500 "initiation fee" and an $1,800 monthly fee, up from $1,500 when the service launched earlier this year. The monthly fee includes registration, taxes, insurance, and maintenance costs.

Not every Cadillac model is available through the service, but there isn't exactly a shortage of choices. The list includes the XT5, Escalade, CT6 (including the plug-in hybrid model), ATS-V and CTS-V. All cars in the fleet are 2017 or 2018 models in the Platinum and Premium Luxury trim levels. CT6 models are equipped with Cadillac's new Super Cruise driver-assist system.

Cadillac Super Cruise

Cadillac

The exact mix of cars depends on the market, and users can exchange cars up to 18 times a year. The service offered unlimited mileage initially, but Cadillac is now instituting a cap of 2,000 miles a month. Data showed that most customers don't need unlimited mileage, Lee said, and Cadillac doesn't want to get stuck with a glut of high-mileage cars.

Subscription services are becoming more popular as automakers look for alternatives to car ownership that will still generate revenue and keep consumers loyal to their brands. Porsche launched its own Porsche Passport service in Atlanta last month, and Ford-owned Canvas operates in the San Francisco and Los Angeles metropolitan areas.

"This is a highly-effective way to bring a brand new customer to the Cadillac brand," Lee said of Book's potential to increase sales. Mobility services can also act as a hedge against decreased car sales, something Cadillac parent General Motors is very interested in.

Alongside Book, GM has an entire mobility-service division called Maven that operates car-sharing services in some cities. Cadillac leaned on Maven's experience with fleet management and for the "underpinnings" of the Book app, Lee said. But she said the Cadillac service appeals to a different kind of customer, and not just because of its luxury branding.

"There's a good desire to actually have a vehicle in your possession," rather than renting one when needed," Lee said. Because while many people may have that feeling, they might not all feel like paying for insurance.